Jan 6 (Reuters) - Apparel retailer Goody's Family Clothing will hold an
auction to liquidate the chain early next week, the New York Post said, citing
sources.
The Knoxville, Tennessee-based retailer, which reorganised its business
in October after spending four months under Chapter 11 bankruptcy protection, is
being forced into liquidation by skittish lenders despite weeks of talks to keep
the chain alive, the paper said, citing sources.
The retailer filed for bankruptcy protection on June 9, saying it had
been hurt by high gasoline and food prices that had forced consumers to cut back
on nonessential purchases.
The paper said the chain's demise is another blemish on the reputation of
its owner, Prentice Capital, which also owns bankrupt retailers KB Toys and
Whitehall Jewelers, and held a stake in now-defunct Steve & Barry's.
Prentice Capital and Goody's could not be immediately reached by Reuters
for comment.
(Reporting by Ratul Ray Chaudhuri in Bangalore; editing by Simon Jessop)
Keywords: GOODYS/
(ratul.raychaudhuri@thomsonreuters.com; within U.S. +1 646 223 8780; outside
U.S. +91 80 4135 5800; Reuters Messaging:
ratul.raychaudhuri.reuters.com@reuters.net)
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